The following ratios are available for Atkins' Ltd.

2018 2017 .

Current ratio 1.3:1 1.4:1

Accounts receivable turnover 12 times 10 times

Inventory turnover 11 times 9 times

a) Is Atkins' short-term liquidity improving or deteriorating in 2018? Be specific in your answer, referring to relevant ratios.

b) Do changes in turnover ratios affect profitability? Explain.

c) Identify any steps Atkins' might have taken, or might wish to take, to improve its management of its accounts receivable and inventory turnovers.